In-Store Advertising with Digital Signage

Digital signage at the point of sale is emerging as a significant revenue source for retailers and a growing advertising platform for manufacturing brands. Yet, empirical research on its effectiveness remains limited. This study leverages a novel technology and field experimental data spanning 237 advertising campaigns and 30 million shoppers to fill this gap. The authors find that digital signage increases the likelihood of purchasing featured products by 8.1%. This effect is amplified for hedonic, novel, and low-priced products, as well as for popular brands. It is also stronger on weekends, later in the day, during favorable weather, in crowded stores, for emotional advertising messages, and in the absence of concurrent promotional cues. The impact of digital signage further increases when it is placed near the advertised product. Unlike price promotions, digital signage does not affect spending for those who purchase the products. Notably, exposure to digital signage also boosts sales of other products from the same brand and within the same category, without causing purchase acceleration, indicating that it drives incremental consumption. These findings offer new insights into the efficacy of in-store advertising with digital signage and provide actionable guidance for optimizing its use.